TORONTO – The just-announced September 20 federal election is fast approaching, and as the platform’s promises are unveiled, many Canadians will be asking, “What’s in it for me?”
This election should prove to be very interesting from a financial point of view. Evidenced by bloated bank accounts on one end of the spectrum and struggling entrepreneurs on the other, the K-shaped economic recovery is clearly evident. The rich got richer and the poor got poorer and this could ultimately be the focal point that defines the importance of portfolio politics in this election.
Because some benefited and others did not, the way these issues are addressed during the election campaign could change the way households vote.
Nothing has more impact on portfolio policy than a paycheck.
From the start, the Conservatives presented their plan, focusing mainly on job creation. Securing jobs with the promise of making a million or more back in a year is something to pay attention to. The party also promises to pay 50% of the salaries of new recruits for six months after the end of the federal wage subsidy. And the hardest hit sectors, including retail, tourism and hospitality, are promised up to $ 200,000 in loan relief that will be partially canceled, and there is an incentive to invest in them. small businesses through a 25% tax credit on amounts up to $ 100,000 over the next two years.
These are overall platform issues, but let’s be more specific.
Obtaining full-time employment has been a challenge for workers in the odd-job economy, including independent contractors, contractors and temporary on-call workers. This cohort often falls through the cracks, due to insufficient insurable hours for government support or financial safety nets. The Conservatives want to change that by forcing odd-job businesses to pay CPP and EI premiums into a new portable employee savings account every time they pay their employees. The money will grow tax free and can be withdrawn by the worker as needed.
Women have been hit hardest during the pandemic and childcare costs for families remain a financial burden. The Conservatives plan to convert the child care expense deduction into a refundable tax credit covering up to 75% of child care expenses for low-income families. While all families with incomes below $ 150,000 will be better off, the biggest benefit will go to families with less than $ 50,000. The bottom line here for families is: more income available to raise children and bring women back into the workforce by making child care more affordable. For some families, it’s a pocket-sized game changer.
The Liberals are also very focused on getting women back into the workforce and child care is clearly a hot topic for the ruling party.
The Liberals have declared a goal to reduce regulated child care fees everywhere outside Quebec to an average of $ 10 per day over the next 5 years, with the promise of improving conditions for educators as well and creating more. availability for families. The end goal includes investing up to $ 30 billion over the next five years and a minimum of $ 9.2 billion per year to create a pan-Canadian system.
The Liberals have expressed their willingness to help struggling industries such as theater and the performing arts and to support job creation by continuing the Canada Recovery hiring program until March 31, 2022.
The NDP pre-empted the election announcement with a different approach focused on the super-rich with the promise of a 1% wealth tax for households with more than $ 10 million in assets and a plan to impose an additional 15% levy on companies that received pandemic grants at the same time as they benefited from them during the pandemic.
Obviously, this is only the beginning and it is only the beginning.
All parties face the challenge of getting your attention as they try to achieve what matters most to you and your family – money in your pocket.
It is far too early to say where you will get the most bang for your buck, with only the Conservatives clearly setting out their plan in a 160-page document. However, it is fair to say that we will be watching and listening carefully.
The politics of kitchen tables are about to get interesting.